What steps will reproduce the problem?
1. Have the following Markdown contents in a file

A list follows:

• This is element one

• The second element.

  This is still the second element, which happens
  to expand across multiple paragraphs.

• The third element.

1. Convert from Markdown to HTML

What is the expected output? What do you see instead?

This is the expected output:

A list follows:

• This is element one

• The second element.

  This is still the second element, which happens to expand across multiple paragraphs.

• The third element.

This is what I get instead:

A list follows:

• This is element one
• The second element.

This is still the second element, which happens to expand across multiple paragraphs.

• The third element.

The second paragraph in the second item is generated outside the list and causes the list to end and then restart for the third item. This is not consistent with the syntax specified here: http://daringfireball.net/projects/markdown/syntax#list

What version of the product are you using? On what operating system?
pandoc 1.6 on Ubuntu 10.4

Please provide any additional information below.

Google Code Info:
Issue #: 254
Author: jdev...@gmail.com
Created On: 2010-08-30T11:40:40.000Z
Closed On: 2010-08-30T17:47:56.000Z

This is a place where pandoc's output diverges from Markdown.pl's, but it is not a bug. Pandoc is in accord with the spec (I quote here from the the syntax description on daringfireball.net): "List items may consist of multiple paragraphs. Each subsequent paragraph in a list item must be indented by either 4 spaces or one tab:"

Note that you only have 3 spaces before your continuation paragraph.

Markdown.pl doesn't rigorously enforce this 4-space rule, but pandoc does.

Google Code Info:
Author: fiddloso...@gmail.com
Created On: 2010-08-30T17:47:56.000Z

Ah, my bad, thanks for clarifying.

Google Code Info:
Author: jdev...@gmail.com
Created On: 2010-08-30T18:08:46.000Z